Can I get a tax credit for my new furnace?

April 08, 2020

For a lot of households, there usually seems to be a lengthy list of home improvement projects that they would like to get done or new ideas they’d like to try. While several may not be required, furnace replacement is an example of a job that might be critical to keeping your home comfortable through the cooler months in Siloam Springs.

Getting a new furnace is a sizeable investment. You’ll absolutely see the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a tad intimidating at first. The good news is that when you pick a new energy-efficient furnace, you might be eligible for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to get the tax credit, you must buy a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When researching furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Siloam Springs Heating & AC, the experts will help you choose a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to confirm the furnace you select has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit is not going to be the only savings you’ll observe when you buy a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy costs all year long. And your household will also have higher confidence in your HVAC system to keep your house at just the right temp.

If you have questions concerning your eligibility for a tax credit, or if there are further local savings you may be eligible for by buying a new high-efficiency furnace, give our teams at Siloam Springs Heating & AC a call at 479-308-8176. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.